Forum Replies Created
I would be careful selling a half share. If you end up sharing a mortgage then most lenders will still consider you liable for the whole debt. Lots of other problems with shared ownership too.
Your neg geared places will be pos one day. Factor in all the selling costs and the stamp duty to buy the next place when you make your decision.
What is stopping you from buying pos geared properties from here on?
Just some points to think about – not advice as such.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
If you have any nondeductible debt (home loan, car loan etc) then your IP loan should be IO. This means you can commit all principal repayments to kill the nondeductible debt.
If this is your only debt it is not so important. I would still consider IO if you plan on buying multiple properties to build deposits and preserve cashflow.
If you are buying one IP to have forever and have no other debt then PI is an option I guess – but I would probably find a reason to argue against it [biggrin]
Does this make sense?
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Karen,
Normally mortgages here are based on your income which includes rental income if buying IPs.
If you have a higher deposit this can be waived with a loan purely lent against the asset with no income/employment required. Typically a 30% deposit is needed here.
You need to speak to a broker to get some detailed guidance on the different loans here.
The brand new self employed income stream doesn’t need to be a problem with higher deposits as well.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Sounds right.
Your rent is the income.
You can deduct noncapital expenses such as interest on funds borrow to buy that property, repairs etc.
Just like an IP – well as soon as you rent it is is an IP with a 6 year CGT exemption under specific circumstances.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Originally posted by brent2:http://finance.news.com.au/story/0,10166,18038015-462,00.html
You shoule be fine now, once one of the banks start doing this, then all of them will.
Regards
Brent2[biggrin]
these loans have been around a while but it is still a niche that few lenders seem interested in exploiting. SGB self insure and I think the LMI companies will not be keen on the added risk.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Al ltrue enough but I recently found out why 10% is often insisted upon by the solicitors.
Seems that 10% is typically a figure that covers all expenses and penalties if you default on settlement. The solicitor likes to have that in the trust account so if the worst eventuated they don’t need to chase you for it.
Of course a lower deposit is possible if both parties agree.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Originally posted by Dr.X:sorry but anyone dumb enough to fall for this deserves to get scammed.
How Pathetic!
We buy properties in Adelaide. No Agent Fees.
[email protected]
INCREASE THE CASH FLOW FROM YOUR INVESTMENT PROPERTIES!
http://www.renttoownau.com/ http://www.vendorfinanceau.com/I disagree. They ask for no money and offer to pay you for holding their money. To someone inexperienced and perhaps a little naive it can sound like a great deal. Nothing to lose!
The Nigerian scams rely on blatant greed with the possibility of millions in the offing baiting wealthy people to part with tens or hundreds of thopusands to get their cut. But this is more insidious as it is worded more like a part time job which many battlers are keen to get – esp vulnerable people like pensioners, single mums etc
I can imagine people of my parents generation easily getting caught up with some thing like this. Especially if they are new to the internet.
Your outlook seems a bit harsh to me but then I have often been accused of being a softie. I hope noone you love ever gets scammed.
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
The options you describe all have significant lifestyle impacts.
Do you prefer to reno and move often? I know with a young family this wouldn’t be my choice.
Do you want the lifestyle of an onsite landlord? I wouldn’t but wouldn’t knock anyone else doing it.
So you need to understand that what we would do is meaningless.
I would tend towards the first option. A PPOR with no nondeductible debt yet borrow to 80% to fund other investments all geared at 50 – 80% depending on the investment and the market cycle. I would have both property and equities in the portfolio.
Like pulling teeth but you got an opinion. Not financial advice tho…
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Originally posted by Derek:Hi Insan,
My reading of this page had a little alarm bell go off
http://www.canterburyservices.com.au/step_one.html
It seems to me they are advocating capitalising interest – which there is still some doubt about in terms of tax deductibility. Maybe wrong but someone else may like to comment.
Derek
[email protected]
http://www.pis.theinvestorsclub.com.au
0409 882 958I am not sure – it may just be poor grammar – I might call them tomorrow and check.
If they are not capitalising interest then it is not dissimilar to what many investors do except maybe a bit more aggressive than some.
The options writing is also a higher risk strategy and not one I fully understand, at least not enough to pass judgement.
I think I would be checking their fees and also making sure any property they source gets valued in at purchase price – hopefully higher!
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Originally posted by Derek:Hi Insan,
My reading of this page had a little alarm bell go off
http://www.canterburyservices.com.au/step_one.html
It seems to me they are advocating capitalising interest – which there is still some doubt about in terms of tax deductibility. Maybe wrong but someone else may like to comment.
Derek
[email protected]
http://www.pis.theinvestorsclub.com.au
0409 882 958I am not sure – it may just be poor grammar – I might call them tomorrow and check.
If they are not capitalising interest then it is not dissimilar to what many investors do except maybe a bit more aggressive than some.
The options writing is also a higher risk strategy and not one I fully understand, at least not enough to pass judgement.
I think I would be checking their fees and also making sure any property they source gets valued in at purchase price – hopefully higher!
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Originally posted by Wylie:My understanding is that if they are on a lease, you cannot ask for vacant possession. However, if you go ahead and purchase and they fall behind in their rent, you can give them notice.
Going by what you have written, I’d go ahead and buy it. Keep taking the current rent until the leases end (make sure you give them the right amount of notice that you will not be renewing the leases) and then go ahead with your renos.
If they happen to apply to rent again (not likely as they would have found something else by then) you just don’t rent to them. Take an application but rent it to someone else.
My thoughts, Wylie.
Of course you can ask for vacant possession. You can ask for anything you like.
If on a lease then it is harder for the vendor to deliver and it may delay settlement – which may not be a bad thing.
If they are as bad as it sounds then it may not be hard for the vendor to have them finish the lease early. Alternatively he can offer to pay them something towards moving costs, not press for bond forfeit for damages etc to make it attractive for them to move out.
But as always – the more conditions in your offer generally the higher the offer must be to compensate.
Good suggestion to just buy it, let a PM deal with problems then not renew their lease and reno then.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Of course you can buy it subject to vacant possession.
You can also select the tenants you choose as long as you don’t discriminate. This is nothing to worry about anyway – just quietly tell the PM that you don’t wish to rent it to them.
All the best
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Originally posted by leewizza:By buying an investment first before your own home you wont get the FHOG either.
Best of luck again…. [smiling]“Practise doesn’t make perfect. Perfect practise make perfect”.
Lee
This isn’t true.
Buying an IP doesn’t stop you getting the FHOG for a subsequent home purchase. Just don’t live in the IP for more than 6 months!
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Some of my clients prefer the NODOC loan to 70%.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
When you have read it please write us a couple of para’s on what you thought of it and what impact it has on your plans.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Redwing – can you explain the Offset Gearing Strategy for us?
Thanks
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
What is there to monitor? Is a piece of water surrounded by a jetty on three sides and managed by the marina?
Do you own it freehold?
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
I went through them and thought there was one that had stock?
Why don’t you ask the author himself if he has any or knows where to get them? I am sure he is just an email away.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
We just spent two weeks touring and camping around Tassie. It is a really nice place and well worth a visit.
Went down on the Spirit of Tas out of Sydney which was a good trip too – kids loved it.
Finding it kinda hard to get back into work though…
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
